Over 25 million people in the UK have LinkedIn profiles. We anonymise and aggregate the information from these profiles to create unique insights into workforce trends.

The LinkedIn Workforce Report is a monthly report looking at hiring and professional migration trends in the UK, and this month’s report looks at the latest data from May 2018. This is our seventh Workforce Report for the UK, and it also takes a comparative look at both data from May 2018 as well as that from the previous 12 months to benchmark our findings and identify trends.

LinkedIn’s vision is to create economic opportunity for every worker in the global workforce. We hope that the Workforce Report will be useful to our members, allowing you to better navigate your career, and to businesses and policy makers, who will be able use our insights to better inform their decisions on talent, migration, and employment.

We time the workforce report to support the Office for National Statistics (ONS) Labour Market Review, and we cover the same period, up to the end of May 2018.

Key Insights

• Hiring nationally was down in May. The seasonally adjusted (S.A.) month on month (MoM) Hiring Rate declined by 5.4% in May, reversing a 7.6% increase in April and  marking the largest decline in this measure since November 2017. The Hiring Rate fell in all of the 12 UK nations and regions with the exception of Scotland and Wales, and was down by 7% MoM in London. The North West saw a marked decrease in hiring and is the only region to see its employment rate fall over the last year, according to ONS data.

• The UK continues to experience a net loss of overseas talent. The significant shift in the net outflows of overseas workers that had become evident in the first quarter of 2018 continued in May. The UK has become a net exporter of talent mainly as a result of the fall in migration into the country since the referendum on its membership of the European Union. This is in line with the latest ONS quarterly bulletin which has also indicated a significant decrease in the number of European Union citizens migrating to the UK in search of work over the last year.

• More of the UK’s nations and regions are losing talent abroad. Nine out of 12 regions experienced outflows of international workers during May compared with eight in April. The regions that lost the most talent to other countries in May were the North East, Northern Ireland, and Yorkshire and the Humber. Only the East of England, the West Midlands and the South East attracted more overseas workers than they lost.

• London continues to see a net outflow of professional talent overseas. In May the capital lost workers abroad for the fourth month in a row. The city became a net exporter of talent to the EU27 in the first quarter of 2018. In the capital there has also been a consistent decline in the proportion of total new arrivals that have moved from countries, compared to those who have moved from other parts of the UK.

• The improvement in hiring rates compared to last year has slowed. The year on year (YoY) National Hiring Rate for May 2018 was up 3% on the same month in 2017, but this was significantly below the 18% increase for April when compared with April 2017. Modest YoY increases, averaging less than 2% across the hiring market, were registered in 13 of the 20 economic sectors that returned significant data.

• Hiring was down in most sectors of the jobs market. In May, seasonally adjusted MoM hiring was negative in 17 of the 20 sectors that returned significant data, with an average decline of nearly 5%. Key sectors that registered negative growth included the Legal sector (down 25% MoM), Finance (down 12%), Construction (down 9%), and Manufacturing (down 8%). Corporate Services, Finance and Software and IT Services dominated the hiring market in May, together accounting for nearly a third of new hires.

The Hiring Rate

The S.A. MoM National Hiring Rate for May was down 5.4% on the previous month, reversing the rise of 7.6% in April and returning to the downward trend of earlier in the year.

Year on Year (YoY) hiring was up 3% on May 2017, an indication that more people took up new jobs in May 2018 than in the same month last year, but this increase was much lower than the 18% growth in April.

Regional Hiring Rates

The S.A. MoM change in the Hiring Rate in May fell in all of the 12 UK nations and regions except Scotland and Wales, which registered growth of 2% and 1% respectively. Hiring in London was down 7% MoM, and the North West and East of England both registered a decline of 8%. Wales and Yorkshire and the Humber achieved the most significant YoY growth in the UK versus May 2017 of 6% and 5%, respectively.

Notable regional activity this month includes:

London

The S.A. Hiring Rate in London MoM declined by 7% in May, reversing the 11% growth in April that had ended a long run in which there had been no significant changes in hiring in the capital. YoY growth in hiring was down 6% on May 2017, the poorest performance in the country. Finance was the top sector for hiring in the capital, accounting for nearly 14% of new hires, followed by Software and IT Services and Media and Comms.

The East of England – The S.A. MoM Hiring Rate was down by 8% in May which, alongside the North West, was the worst performance of any region. The YoY Hiring Rate was also down by 1% on May 2017. Most new hires were in Corporate Services, followed by Software and IT Services and Finance.

The North West – The S.A. MoM Hiring Rate in the North West was a negative 8% in May, and YoY growth on the same month last year was also down 4%. Corporate Services accounted for most new hires in the region followed by Manufacturing and Software and IT Services.

Scotland – Scotland registered the highest growth in the S.A. MoM Hiring Rate of any region or nation in the UK in May, albeit of a modest 2%. Growth in the YoY Hiring Rate versus May 2017 was also 2%. Energy and Mining was the top sector for new hires followed by Corporate Services and Finance.

Wales – The S.A. MoM Hiring Rate was up 1% in May, a considerable reduction compared with  the 11% growth in April. However, Wales achieved the highest YoY Hiring Rate of any part of the UK at 6% versus May 2017. Corporate Services led the way with new hires, followed by Manufacturing and Construction.

South East – Hiring in the South East was down in May with the S.A. MoM Hiring Rate declining by 7%, on a par with London. The YoY Hiring Rate in the South East was also a negative 5% versus May 2017. The top sectors for new hires were Software and IT Services, Corporate Services and Manufacturing.

The West Midlands – The hiring rate in the West Midlands was down 6% MoM in May and did not change YoY versus the same month in 2017. The sector in which there were most new hires was Manufacturing, followed by Corporate Services and Software and IT Services.

Yorkshire and the Humber – The S.A. MoM Hiring Rate declined by 5% in May, but the region achieved the second highest YoY growth in the Hiring Rate in the UK of 5% versus May 2017, maintaining the growth seen in April. Top sectors for new hires were Corporate Services, Manufacturing, and Software and IT Services.

The East Midlands – In May the East Midlands registered a negative S.A. MoM Hiring Rate (down 3%), although YoY hiring grew 2% versus May 2017. Corporate Services accounted for most new hires, followed by Manufacturing and Software and IT Services.

The North East – The S.A. MoM Hiring Rate was down 3% in the North East in May. YoY, there was no change in the hiring rate versus May 2017. Most new hires were in Manufacturing, Energy and Mining and Corporate Services.

South West – The S.A. MoM Hiring Rate in May was down by 3% in the South West, reversing the upward trend experienced since the start of the year. The hiring rate was also down 4% YoY versus May 2017. Corporate Services was the top sector for new hires, followed by Manufacturing and Software and IT Services.

Sector Hiring Rates

A deep dive into the individual Hiring Rates for different sectors of the economy can give us a better understanding of the hiring changes that have been taking place. The largest proportions of new hires across the UK in May were in Corporate Services (11.5%), Finance (9.8%) and Software and IT Services (9.8%).

Legal – The Legal sector registered the largest decrease in hiring within the labour market, with the S.A. MoM Hiring Rate down 25% in May, reversing the 19% increase of April. YoY the Hiring Rate also declined by more than any other sector at 11% down on May 2017.

Finance – The Finance sector also registered negative growth in the S.A. MoM Hiring Rate in May (down 12%) after a more buoyant April (up 13%). The picture was better for YoY growth, which was up 5% on May 2017. Finance accounted for 9.8% of all new hires nationally in May.

Nonprofit – The Nonprofit sector had the distinction in May of achieving the highest growth in the S.A. MoM Hiring Rate in May (up 3%) as well as the highest rise in the YoY Hiring Rate versus May 2017 (up 9%) alongside Transportation and Logistics.

Construction – Construction hiring has been erratic since last November and in May the S.A. MoM Hiring Rate declined by 9% after having risen in April. The YoY Hiring Rate did not change versus May 2017.

Manufacturing – The Hiring Rate in the Manufacturing sector was also negative in May (down 8% MoM), although it grew YoY by a modest 2% versus the same month last year.

Energy and Mining – In May, Energy and Mining registered a decline in the S.A. MoM Hiring Rate of 7%, overturning April’s more positive performance (up 17%). YoY there was no change in the Hiring Rate versus May 2017.

Design – The S.A. MoM Hiring Rate in the Design sector was down 6% in May, and the YoY Hiring Rate was also negative (down 7% on May 2017).

Transportation and Logistics – In May the S.A. MoM Hiring Rate was negative (down 6%), although Transportation and Logistics achieved the highest YoY Hiring Rate of any of the sectors that recorded significant data, up 9% on May 2017.

Corporate Services – S.A. MoM Hiring declined in the Corporate Services sector by 4% in May, reversing 12% growth in April. However, the YoY Hiring Rate in this sector Services grew by 8% versus May 2017. Corporate Services accounted for 11.5% of all new hires in the UK in May.

Real Estate – The performance of the Real Estate sector remains erratic, with the S.A. MoM Hiring Rate turning negative in May (down 4%) after growth of 4% in April. Growth YoY was 4% versus May 2017.

Consumer Goods – There was a decrease in the S.A. MoM Hiring Rate in the Consumer Goods sector of 3% in May, although YoY the hiring rate grew 3% versus the same month last year.

Hardware and Networking – The S.A. MoM Hiring Rate in Hardware and Networking was negative in May (down 3%), continuing the decline from April. The YoY Hiring Rate versus May 2017 was also down by 7%, placing the sector among the worst performers.

Healthcare – A 3% decline in the S.A. MoM Hiring Rate in Healthcare in May reversed the 7% growth of April, suggesting that the public services may not be enjoying the rebound that some had predicted. YoY the Hiring Rate edged up by just 1% on May 2017.

Recreation and Travel – The S.A. MoM Hiring Rate was negative (down 3%) in May. However, growth in the YoY Hiring Rate of 8% on May 2017 suggests the longer-term performance registered in April (22%) may be continuing.

Media and Communications – Media and Comms registered a 2% decline in the S.A. MoM Hiring Rate in May, and YoY growth versus the same month last year did not change.

Public Administration – As with Healthcare, Public Administration also registered negative growth in the S.A. MoM Hiring Rate in May (down 2%), although YoY the Hiring Rate was a more positive 3% up on May 2017.

Retail – A negative S.A. MoM Hiring Rate in the Retail sector in May (down 2%) reversed a limited pick up of 6% in April. There was better news in terms of YoY growth versus May 2017, which was reported at 6%.

Education – The S.A. MoM Hiring Rate was down 1% in the Education sector in May, although this sector achieved a YoY increase of 3% on May 2017.

Software and IT Services – Software and IT Services also registered a negative S.A. MoM Hiring Rate in May (down 1%). There was no change in the YoY Hiring Rate versus May 2017.

Entertainment – The Entertainment sector was one of only two sectors among the 20 that returned significant data registering growth in the S.A. MoM Hiring Rate in May, albeit of a modest 2%. The sector has made limited progress since last year, with the YoY Hiring Rate rising 1% on May 2017.

Migration

Our April report revealed that migration into the UK has been falling steadily since the referendum on the UK’s membership of the European Union, and that in Q1 2018 the UK became a net exporter of talent. Migration into the UK from the EU27 countries has been falling steadily, and in the first quarter of this year more professionals left for the EU27 than entered the UK from the EU27. The changes that we have seen in migration since the referendum are not limited to movements from or to EU27 nations: there has also been a reduction in migration to the UK from the rest of the world.

In May the net flows of overseas workers out of the UK that were evident in the first quarter continued, with only three out of 12 UK regions and nations being net attractors of international talent: the South East, the East of England and the West Midlands.

London remains the most attractive region for international arrivals by volume, and continues to attract almost double the amount of international migration than its nearest rival Scotland, but Scotland continues to attract a higher proportion of new arrivals from abroad. London, which became a net exporter of talent to the EU27 in Q1 2018, continued to lose international talent in May but the rate at which it was doing so slowed.

Outward migration from the UK’s regions

London, the South East and the East Midlands continue to be the regions from which members are most likely to leave and move to other UK regions or abroad, although in most regions of the UK departures slowed in May.

Of the three regions with the greatest number of overall departures, only London saw the majority of those leaving head abroad. Similarly, the majority of those leaving Northern Ireland and Scotland also headed abroad.

Inward migration to the UK’s regions

In May, London, the South East and the East of England were the three regions gaining the most members from other UK regions or other countries.

Scotland and London saw the majority of inbound members arrive from another country, but this is no longer the case in Northern Ireland, where since February there has been a shift to a majority arriving from within the UK. Every other UK region also welcomed most of their arrivals from another part of the UK. There has been a consistent decline since the start of the year in the proportion of migrants arriving in London from other countries compared to those coming from within the UK, and the capital is now approaching an even split between international and domestic arrivals.

Net flows to UK regions

In May, London, the South West, the North West and Northern Ireland were net recipients of combined domestic and international migration. While in London, the rate at which it has been losing talent overseas is slowing but domestic migration into the capital has been rising. The North East continued to see the biggest net outflow of any region in May, although the rate at which this is happening was unchanged on April.

For net domestic migration, London continues to be by far the biggest draw and there are signs that it is becoming more attractive. The South East and North East remain the regions with most people leaving.

From the perspective of international migration, only three out of the 12 nations and regions were net gainers of international talent in May, compared to four out of 12 in April and nine in January. In May, the East of England, the West Midlands and the South East all attracted talent from abroad. London, the East Midlands, the North East, the North West, Northern Ireland, Scotland, the South West, Wales and Yorkshire and the Humber all lost more workers to other countries than they gained.

Discuss the report on LinkedIn and Twitter at #UKWFR. Follow @LinkedInUK on Twitter to receive future reports, and follow our UK Country Manager Josh Graff on LinkedIn for additional insights.